Trump's Tax Bill Faces Republican Resistance
U.S. President Donald Trump's tax bill encountered a significant hurdle as hardline Republicans demanded spending cuts, leading to its temporary blocking in Congress. The proposed bill, which includes extensions and eliminations of various taxes, would add significantly to the federal debt. Moody's downgraded the U.S. credit rating, anticipating fiscal decline.
In a surprising development, U.S. President Donald Trump's tax reform bill faced a roadblock on Friday, as hardline Republicans in Congress blocked the measure over demands for deeper spending cuts. This rare political setback came amid the bill's provisions that would add trillions to the federal debt, affecting the nation's credit outlook.
The credit rating firm Moody's downgraded the U.S. to below AAA status, citing a lack of substantial government effort to curb spending. This downgrade follows similar actions by Standard & Poor's and Fitch, with Moody's expressing concerns over long-term economic impacts and rising federal debt burdens projected to reach 134% of GDP by 2035.
Partisan divides intensified as Republicans, split between hardliners and moderates, debated the bill's approach towards Medicaid cuts and tax reforms. Despite President Trump's push for party unity, disagreements persisted, leaving the bill's future uncertain as negotiations continue over the weekend.
(With inputs from agencies.)
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